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"Large companies who are new to the region and are seeking to invest here naturally go where investors are given the most discounts. Ten years ago - Hungary was one of the main attractions. These days, however, companies are drawn to Slovakia, Romania and Bulgaria due to high unemployment and lower wages. In addition, these countries often attract investors with exceptional discounts," said Peter Kiss of KPMG.
Kiss added, however, that many companies already present in Hungary were strengthening their presence here by either expanding regionally using Hungary as an HQ, or developing their activities within the country. Kiss noted that these trends were observable in the R&D and service sectors.
Hungary is in need of a long-term strategic plan to attract investment, said former finance minister and KPMG partner Csaba Laszlo.
"We need to develop the type of concept which outlines simple priorities such as innovation and R&D, and which will send a simple message to investors. It is also important to communicate the view that Hungary is a good quality center for both industrial production and professional services," said Laszlo.
